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The popularity of EZ bikes is driving rapid growth in the lead-acid battery market in Bangladesh. Recognizing the environmental and health hazards of informally-recycled batteries, Stanford University and Georgetown University, in collaboration with ARCED Foundation, are spearheading research to bring high-quality lead-acid and lithium-ion batteries to the market.

Tags: Lead Acid Battery, Lithium Battery, RCT, Exit Interview, Incentivized survey, SMK engagement, Audit Study

Trade-offs between Price, Information, and Reputation by Dealers in a Circular Economy: An Audit Study in the Electric Three Wheeler Battery Market in Bangladesh (Use of Lead Acid Battery)

Project Overview

Lead is widely used in manufacturing, particularly in lead-acid batteries for motor vehicles and electric three-wheelers (EZ bikes) in Bangladesh. However, lead poses significant environmental and health risks, especially when improperly disposed of. With approximately 2 to 4 million electric three-wheelers in the country, the frequent disposal of lead-acid batteries contaminates soil, water, and food systems, endangering human health. This research aims to develop sustainable and economically viable alternatives to lead-based batteries, reducing environmental harm and improving public health. The study also explores market dynamics, including stakeholder perspectives, willingness to pay for higher-quality batteries, and the informal EZ bike battery business. Through surveys, focus group discussions (FGDs), and randomized controlled trials (RCTs), the project seeks to provide actionable insights for creating a more sustainable transportation ecosystem in Bangladesh.

Study Aims and Objectives

The research aims to reduce environmental and health impacts of lead-acid batteries, assess willingness to pay for better batteries, study informal market dynamics, identify key factors and misconceptions, and explore seller strategies. It seeks to develop sustainable solutions for EZ bikes and transportation in Bangladesh by engaging stakeholders and analyzing market supply and demand.

Audit Study

Location: Dhaka

Timeline: 28 March 2023 – 16 July 2024

Overview

In Bangladesh, we delved into the EZ Bike battery market by conducting an audit study at local shops selling lead-acid batteries for electric three-wheelers. Our goal was to uncover the extent of information asymmetry and misinformation affecting the market. With a dedicated team, we gathered insights on battery preferences, characteristics, and resale practices through consistent interviews over two months, ensuring high-quality data collection.

Listing Survey

The listing surveys spanned various locations, including Dhaka, Gazipur, Savar, Tongi, Narayanganj, Keraniganj, and other areas. The surveys aimed to identify dealer shops for the Mystery Shopping Exercise, covering a total of 45 dealers in the first survey and expanding to locate dealer stores through interviews and GPS data in subsequent surveys. We have conducted four listing surveys in total. The focus was on identifying large and small dealers, wholesale shops, shops with or without sales managers, and gathering information on EZ bike battery shops and garages from multiple EZ bike stands.

Pilot Survey Summary

The pilot surveys were conducted with teams of enumerators playing different customer characters to gather detailed information and identify issues in the survey process. The first pilot surveyed 12 dealers, while the second aimed to evaluate the effectiveness of mystery shoppers with a scripted approach but was halted due to seller suspicion. The third pilot, with a revised script and character introductions, successfully gathered data from 28 shops. These pilots focused on refining the mystery shopping approach and ensuring accurate data collection from battery sellers.

Audit Study Survey

Location: Dhaka, and adjacent area

Timeline: 26 April 2024 – 16th July 2024

Sample: 250

To study the supply side of the market for electric three-wheeler batteries in Bangladesh, we conducted an audit study to understand the EZ Bike battery market, focusing on information asymmetry and misinformation. We identified local shops selling lead-acid batteries (known as "pani battery") for 8-seater electric three-wheelers and collected data from shop owners over a two-month period. Our field team included 12 enumerators, 2 field monitoring officers, and 6 audio auditors to ensure data quality. The survey covered sellers' preferences for battery brands, characteristics, resale practices, and more. We interviewed 250 shops from 18 locations, including Dhaka, Gazipur, Mymensingh, and Narsingdi, completing around 1200 visits and gathering data from approximately 400 shops.

Exit Survey

Shopkeeper Survey

Location: Dhaka

Sample: 250

Timeline: 03 September 2024 – 30 October 2024

The shopkeeper survey in Dhaka gathered insights on retail environment and decision-making for selling electric three-wheeler batteries from 250 shopkeepers between September 3 and October 30, 2024. It covered shop characteristics, manufacturer incentives, discount rates, and risk aversion.

The customer survey, conducted from October 15 to 21, 2024, focused on 250 EZ bike owners and garage managers in Dhaka. However, we haven't found enough respondents which left only 16 customer surveys which we were able to conduct. It explored their needs and preferences for EZ bike batteries, aiming to inform business decisions and improve products and services.

Lithium Battery Development in Bangladesh

Location: Dhaka, Rajshahi

Timeline: 7th September 2023 – 24th October 2023

Overview

The first FGD in Dhaka included six garage owners and focused on battery longevity, costs, warranties, mileage, and electricity consumption. Participants preferred non-guaranteed batteries for their longer durability. The second FGD in Rajshahi included 7 battery shop proprietors and 8 EZ bike drivers, covering similar topics. Participants highlighted the impact of battery age on costs and mileage and preferred longer-lasting batteries. Both FGDs provided insights into lead-acid battery usage and market dynamics.

Battery Manufacturing and Factory Visits

Our Principal Investigator (PI) team, including Erica Plambeck, Mogdho Mim Mahzab, and Amrita Kundu, embarked on an insightful journey to Bangladesh to delve into the intricacies of battery manufacturing. They visited various manufacturers, workshops, and factories to gain a comprehensive understanding of both lead-acid and lithium battery production processes. During these visits, the team closely observed the different stages of battery manufacturing, from raw material handling to the final product assembly. They interacted with factory workers and engineers to gather insights into the challenges and innovations within the industry. The goal was to bridge the knowledge gap between traditional lead-acid batteries and modern lithium alternatives, promoting sustainable and efficient energy storage solutions. Through these visits, the team aims to contribute to the development of high-quality, environmentally friendly batteries for the rapidly growing electric vehicle market in Bangladesh.

Smelting Inquiry Survey

Sample size: 300

Timeline: 19th October 2023 – 18th November 2023

Overview

We are working with Stanford and Georgetown Universities to improve lead acid batteries in Bangladesh and formalize smelting and refining factories. We collected a list of about 300 smelting factory locations across Bangladesh and want to verify their existence and gather information about their operations. Apart from these, we will try to find out the location of other factories by talking to the local people, battery vendors, and factory officials. Later, we will study the health impact of these factories on the surrounding areas.

Incentivized Survey

The ULAB project aims to change the battery market for EZ bikes in Bangladesh by introducing higher-quality lead-acid and lithium-ion batteries. In this particular study, the incentivized survey had four phases, including focus group discussions, two pilot surveys, and the main survey with 2000-3500 participants. The main survey focused on user preferences for features of batteries, aiming to understand consumption preferences and market higher quality batteries in the future.

Location: Dhaka, Bogura

Sample size: 100

Timeline: 29th May 2024 – 15th January 2025

Overview

ARCED Foundation conducted a pilot survey involving 100 EZ bike users in Dhaka and Bogura. The survey included both bike owner-drivers and bike owner-lessors who had bought batteries in the past 12 months. The field team consisted of 3 enumerators, 1 supervisor, and 1 backchecker. The survey covered topics such as bike ownership, battery purchase history, and conjoint tasks. The backchecker completed 56% of the target due to 4 switched-off phones, and 43% of the survey was audio-audited. The survey was conducted using SurveyCTO.

In the pilot 2, ARCED Foundation conducted a survey involving 100 EZ bike users in Dhaka. The survey included both bike owner-drivers who are interested in buying batteries in the next 3 months. The field team consisted of 6 enumerators, and 1 supervisor. The survey covered topics such as bike ownership, battery purchase history, and conjoint tasks. 20% of the survey was audio-audited. The survey was conducted using SurveyCTO.

What's Next ??

Incentivized Survey

In Incentivized Survey we will conduct a survey where our sample will be around 1200-1500 and the survey will be conducted in Dhaka and other rural areas around the country.

Lead Battery RCT

The Lead Battery Randomized Controlled Trial (RCT) in Bangladesh focuses on understanding the market dynamics and environmental impact of lead-acid batteries used in electric three-wheelers (EZ bikes). The study involves surveys and focus group discussions to gather data from stakeholders, aiming to develop sustainable alternatives to lead-based batteries and reduce environmental harm.

Lithium Battery RCT

The Lithium Battery Randomized Controlled Trial (RCT) in Bangladesh aims to assess the market dynamics and environmental impact of lithium-ion batteries in electric three-wheelers. By conducting surveys and focus group discussions with stakeholders, the study seeks to promote sustainable battery alternatives and reduce environmental harm.

Electricity RCT

The Electricity Randomized Controlled Trial (RCT) in Bangladesh investigates the impact of various interventions on electricity consumption and efficiency. By implementing strategies such as energy-saving practices, financial incentives, and smart meters, the study aims to identify effective methods for promoting energy conservation and reducing electricity costs.

Engagement

  • Blog: Pure Earth published a blog "Lead Poisoning and Car Batteries Initiative" — available at pureearth.org.
  • Article: SMEP published an article "Solutions to informal recycling of Used Lead Acid Batteries" — available at smepprogramme.org.
  • Blog: Pure Earth published a blog "Bangladesh (Mirzapur): Assessment – ULAB Factory" — available at pureearth.org.
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OVERVIEW

TOPICS
Lead Acid Battery, Lithium Battery, RCT, Exit Interview, Incentivized survey, SMK engagement, Audit Study

LOCATION
All over Bangladesh

TIMELINE
March 2023- Ongoing

SAMPLE SIZE
400

PARTNER
Stanford University, Georgetown University, ARCED Foundation, Confidence Group, SMK, BRAC Microfinance

PERSONNEL
ARM Mehrab Ali, Sadia Sumaia Chowdhury, Md. Zahirul Islam, Sayed Jobaer Hasan, Samiha Islam, Mehedy Hasan, Tasmina Akter Chowdhury, Tamanna Alam, Tamzid Mashrur Ahmed, Fariha Zaman Surovi, Nadim Mostak Sunny, Tanjim-Ul-Islam

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Aureolin Research, Consultancy & Expertise Development Foundation
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